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2021 (3) TMI 757 - AT - SEBIViolation of the provisions of PFTUP Regulations - artificial trades - manipulative trading - there was a pattern of trading and the price of the shares went up in pre-planned manner by engaging in small trades sometimes of one share each but no explanation of the same was offered - HELD THAT:- This Tribunal held that the placing of orders in a very small number generally may point towards the possible violation of the provisions of PFTUP Regulations still it is possible that an investor observing the movement of the scrip could be placing orders in the system without any intention to manipulate the market. Finding that there is no connection of the appellants therein either with the company or with the group connected with the company it was found that merely irrational behaviour of the investor, for want of connection, it cannot be said that they were trading in manipulative or fraudulent manner Finding that the scrip of Mapro was not a miracle scrip and taking into consideration the doubtful pattern of the trades carried out by the appellant therein this Tribunal though set aside the direction to pay penalty imposed upon the appellant therein, it was held that warning to the appellant that repetition of trading of similar nature as impugned one will lead to penal consequences. All the appellants are small investors. They are admittedly close relatives. However, they are not found to be connected with any other parties involved are not anyway connected to the group entities as described in the appeal of Bharti Goyal [2020 (8) TMI 843 - SECURITIES APPELLATE TRIBUNAL MUMBAI] In the circumstances, the present appeal is partly allowed without any order as to costs. The direction of the adjudicating officer to pay penalty against each of the appellants is hereby set aside. Instead the appellants are warned that repetition of trading of similar nature may lead to penal consequence. The appeal is accordingly disposed of.
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